What to Think About Before Placing a Billboard on Property in California

Billboards can turn unused space into a steady source of income. For many California property owners, placing a sign on their land seems like an easy way to generate revenue. While the concept is straightforward, the process involves several legal and practical steps that require careful consideration.

Step 1: Determine If The Property Qualifies for a Billboard

Not every location is suitable for a billboard. In California, both state and local laws regulate where signs can be placed. Zoning, proximity to highways, and visibility restrictions can all determine whether your property is eligible.

Before moving forward, confirm:

• Your property is zoned for commercial or industrial use.
• The site meets spacing and distance requirements from existing billboards.
• The location complies with California’s Outdoor Advertising Act and local permitting rules.

A billboard operator will typically handle the permitting process.  Billboard operators have employees and contractors with experience in pulling permits.  Property owners can pull their own permits, but it can be a complex and lengthy process that requires knowledge of local zoning and sign ordinances, as well as the permitting process.

Step 2: Understand the Parties’ Relationship and How Their Agreements May Be  Structured

If your property qualifies, decide whether you want to build the sign yourself or involve a billboard operator.  An operator will usually propose either a lease or an easement. Each structure has different legal and financial implications:

• Leases grant use of the land for a fixed period, usually with monthly or annual rent.
• Easements are more permanent and often involve a one-time payment or recurring income that continues even if the property changes ownership.
  

Here is a link to a related article that discusses the differences  lease and an easement.

If you decide to build your own billboard, you will need to find a fabricator and an installer.  Also, unlike the movie, Field of Dreams, building a billboard does not mean that advertisers will be beating down your door to use it.  The odds are, it will generally be more efficient to find a billboard operator to manage the sign.

Step 3: Review the Financial Terms

Billboard payments vary widely depending on traffic visibility, zoning restrictions, and demand. 

Before accepting an offer, review:

• How and when payments will be made.
• Who is responsible for maintenance, insurance, and taxes?
• Whether there are options to renegotiate rent or renew the contract.
  

An attorney can help determine if the proposed payment terms reflect fair market value and ensure all financial obligations are clearly stated.

Step 4: Clarify Maintenance and Removal Responsibilities

Every agreement should specify who maintains the billboard, manages access to the site, and handles removal if the structure is taken down.

A properly drafted contract outlines:

• Maintenance schedules and access rights.
• Responsibility for removal and site restoration.
• Liability for damage, environmental impact, or code violations.
  

Step 5: Secure Legal Review Before You Sign

Even straightforward billboard agreements can create long-term obligations. A lawyer experienced in California real estate and billboard law can identify hidden risks, clarify terms, and ensure compliance with state and local requirements.

Legal review helps protect property rights, secure fair compensation, and prevent disputes down the road.

Turning Opportunity Into Long-Term Value

Hosting a billboard can be a profitable arrangement when structured correctly. The key is understanding the rules, knowing what you are agreeing to, and making sure the terms serve your interests now and in the future.

If you are considering adding a billboard to your property, Hamlin | Cody can guide you through the process, review proposed agreements, and help you negotiate terms that protect your investment.

Contact Hamlin | Cody today to review your billboard opportunity and ensure your property agreement is clear, fair, and legally sound.